Nigeria, others to benefit from green climate fund’s $736m new projects

Nigeria has been listed as a beneficiary of the 15 proposals approved by the board of the Green Climate Fund (GCF) totalling $736.4 million to fund new climate projects in developing countries.

The country is among the Renewable Energy Performance Platform (REPP 2). Others in the category are Cameroon, Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Niger, Sierra Leone and Zambia with CAMCO.

The board met at the 37th meeting in Tbilisi, Georgia, where decisions to support major outcomes for climate action were reached. The funding amounts to $3.6 billion when co-financing is included. The last board meeting of the year brings GCF programming in 2023 to $2.1 billion of GCF resources and a total of $9.0 billion when co-financing is included.

GCF is the world’s largest dedicated climate fund. GCF’s mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries. GCF has a portfolio of $13.5 billion ($51.8 billion including co-financing) delivering transformative climate action, covering 243 projects in more than 120 countries.

It also has a readiness support programme that builds capacity and helps countries develop long-term plans to fight climate change. GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C.

Specifically, the board three-day meeting marked the last one of GCF’s first replenishment period (2020-2023) having programmed a total of $8.5 billion of its resources, with a total value of $34 billion including co-financing during these three years.

Of the 15 new funding proposals, 12 target the most vulnerable – Least Developed Countries (LDCs), Small Island Developing States (SIDS) and African States. Eight proposals are for adaptation, one is for mitigation and eight are fully cross-cutting projects.

Project agreements were signed for six of the projects immediately after their approval, reflecting the urgency by GCF and our partners to deliver on the ground.

The GCF board also approved the accreditation of three new organisations, two of which are Direct Access Entities (DAE), while six organisations were re-accredited –Food and Agriculture Organization of the United Nations (FAO); Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH; International Fund for Agricultural Development (IFAD) and MUFG Bank (part of Mitsubishi UFJ Financial Group, Inc). This brings the total number of accredited entities to 121, including 77 regional or national DAE.

The board also adopted the revised strategy of the Readiness and Preparatory Support Programme 2024-2027 dedicating $500 million for capacity building of partners, recommendations to enhance the project Preparation Facility (PPF), and were presented with an update on GCF’s second replenishment process.

The board thanked those countries who had pledged funds and urged those who have announced their intention to pledge and countries who have not yet pledged to come forward in the lead up to COP28.

The revised strategy of the Readiness and Preparatory Support Programme responds to emerging climate priorities and needs of developing countries. It aligns with GCF’s recently revised strategic plan and aims to strengthen impact, efficiency, and effectiveness.

Co-chair, Nauman Bashir Bhatti said: “I am delighted that all 15 proposals submitted for our scrutiny were approved – further demonstrating our steadfast commitment to vulnerable countries across the world.”

Co-chair, Victoria Gunderson said: “The fund’s portfolio grew to over $51 billion with a total of 243 projects and the board approved key policies to improve climate finance access for developing countries. This places climate action front and centre transforming the lives of people living on the frontlines of a rapidly heating planet.”

Early this month, 25 countries pledged support to the GCF with $9.3 billion over the next four years (2024-2027). The funding pledges will enable the GCF to channel new, additional and predictable financial resources to developing countries to support the paradigm shift towards low-emission and climate resilient development pathways – mitigating 1.5 to 2.4 gigatonnes of carbon dioxide equivalent – and enhancing the resilience of up to 900 million people.